Sakthi Finance Limited has come up with a new Secured NCD issue in August 2025, offering attractive interest rates up to 10.65% per annum. Investors looking for fixed-income options with moderate risk may consider this. Should you invest in Sakthi Finance NCD August 2025? What are the risk factors? Let us analyze the issue in detail.
About Sakthi Finance Limited
Sakthi Finance Limited, incorporated in 1955 and headquartered in Coimbatore, is part of the Sakthi Group. It operates as a Non-Banking Financial Company (NBFC) primarily engaged in financing used commercial vehicles. The company also extends loans for machinery, passenger cars, and construction-related vehicles.
The company’s client base mainly includes Small and Medium Road Transport Operators (SRTOs and MRTOs), primarily from rural and semi-urban areas. Besides its core financing business, Sakthi Finance has invested in renewable energy, operating 17 wind power plants with a total capacity of 5,150 kW in Tamil Nadu and Gujarat.
As of now, it operates through 54 branches across Tamil Nadu, Kerala, Andhra Pradesh, Karnataka, Maharashtra, Haryana, and Puducherry.
Sakthi Finance NCD August 2025 – NCD Issue Details
- Issue Opening Date: August 8, 2025
- Issue Closing Date: August 22, 2025
- NCD Type: Secured, Redeemable, Non-Convertible Debentures
- Face Value: ₹ 1,000 per NCD
- Issue Price: ₹ 1,000 per NCD
- Minimum Investment: 10 NCDs (₹ 10,000)
- Base Issue Size: ₹ 75 Crores
- Option to Retain Oversubscription: ₹ 75 Crores
- Total Issue Size: ₹ 150 Crores
- Listing: BSE
- Allotment: First Come First Serve basis
- Debenture Trustee: Catalyst Trusteeship Ltd
Sakthi Finance NCD August 2025 – Interest Rates / Tenure / Yield
| Series | Tenure | Interest Payment | Coupon (p.a.) | Effective Yield (p.a.) | Maturity Value (₹) |
|---|---|---|---|---|---|
| 1 | 24 mo | Monthly | 9.00% | 9.00% | 1,000.00 |
| 2 | 24 mo | Cumulative | NA | 9.31% | 1,194.83 |
| 3 | 36 mo | Monthly | 9.00% | 9.00% | 1,000.00 |
| 4 | 36 mo | Cumulative | NA | 9.31% | 1,306.05 |
| 5 | 60 mo | Monthly | 10.25% | 10.25% | 1,000.00 |
| 6 | 60 mo | Cumulative | NA | 10.65% | 1,658.72 |
| 7 | 85 mo | Cumulative | NA | 10.38% | 2,013.13 |
Credit Ratings of Sakthi Finance NCD
The NCDs have been rated:
- ICRA Rating: BBB (Stable)
- This rating indicates a moderate degree of safety regarding timely servicing of financial obligations. Instruments with this rating carry moderate credit risk.
Objects of the NCD Issue
The company proposes to utilize the net proceeds from this issue for the following purposes:
- Onward lending and financing activities
- Repayment or prepayment of principal and interest of existing borrowings
- General corporate purposes
Company Financials (in ₹ Crores)
| Particulars | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Total Assets | 1,300.58 | 14,244.69 | 13,676.13 |
| Total Income | 1,919.40 | 2,067.44 | 2,152.04 |
| Profit After Tax | 124.94 | 157.05 | 166.52 |
| Net Worth | 1,808.39 | 1,897.95 | 1,997.65 |
Company has shown stable growth in revenues and profits over the last three financial years.
Why to invest in Sakthi Finance NCD August 2025?
- Attractive interest rates up to 10.65% per annum
- Options for both monthly and cumulative interest payments
- Secured NCDs backed by assets of the company
- Consistent profitability and revenue growth
- Listing on BSE offers liquidity (though limited)
Why not to invest in Sakthi Finance NCD August 2025?
- Credit rating of BBB (Stable) indicates these NCDs are riskier
- NBFCs are exposed to business and economic cycles that can impact repayment ability
- Limited brand recall compared to large NBFCs or banks
- NCDs are not backed by insurance in case of default
- Interest is taxable as per individual tax slab
How to apply for Sakthi Finance NCD?
You can apply online or through offline mode:
- Through demat account via trading platforms such as Zerodha, Upstox, Groww, etc.
- Through physical forms submitted to designated branches of lead managers or brokers
- UPI option available for retail investors for up to ₹ 5 lakhs
Conclusion: Should you invest in Sakthi Finance NCD August 2025?
Sakthi Finance NCD August 2025 offers interest rates up to 10.65%, which is higher than bank FDs. These are secured NCDs, which means they are backed by the company’s assets. However, they come with moderate credit risk due to the BBB rating.
Risk taking investors who understand the risks and are looking for regular income or wealth creation through cumulative options may consider investing a small portion of their portfolio. Investors in higher tax brackets should keep in mind that interest is taxable.
FAQs about Sakthi Finance NCD August 2025
1. What is the interest rate of Sakthi Finance NCD August 2025?
Interest rate ranges from 9.00% to 10.65% depending on the tenure and option chosen.
2. Is Sakthi Finance NCD safe to invest?
These are secured NCDs, but carry a moderate credit risk as rated BBB (Stable) by ICRA.
3. What is the duration of these NCDs?
Tenures are 24 months, 36 months, 60 months, and 85 months.
4. Can I sell these NCDs before maturity?
Yes, they are proposed to be listed on BSE, but liquidity may be limited.
5. How will the interest be taxed?
Interest income from NCDs is taxable as per your income tax slab.
6. What is the minimum investment amount?
Minimum investment is ₹ 10,000 (10 NCDs).
7. When will I receive the interest?
Investors opting for monthly option will receive interest every month; cumulative options pay at maturity.
Note: Investment in NCDs should match your risk appetite and financial goals. Consider consulting your financial advisor before investing.
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